CNH Industrial entered into an exclusive agreement with Hyundai Heavy Industries for the production and development of mini-excavators, completing CNH Industrial’s investment strategy for its excavator product portfolio expansion.

The two companies will benefit from synergies in product development, sourcing, manufacturing and possible future powertrain opportunities. CNH Industrial also will have the opportunity to produce mini-excavator models of up to five tons at its plants and source OEM models above five tons. The agreement has a 10-year term, with a three-year renewal option. It applies globally, excluding the South Korean market. Once fully realized, the mini-excavator product offering will include 14 models ranging from one ton to six tons.

“This relationship brings together the know-how and expertise of two leading global construction equipment manufacturers, allowing us to take advantage of synergies in terms of technology selection and adaptation, component sourcing, and research and development costs,” said Rich Tobin, CEO of CNH Industrial. “Our ability to manufacture and source from our geographically complementary industrial base will allow for scale advantages in product costs to be realized, while ensuring that product lead times and logistics costs are minimized for our dealer network.”

CNH Industrial is a producer of capital goods including tractors and agricultural machinery, earth moving equipment, commercial vehicles, buses and coaches, quarry and construction vehicles, firefighting vehicles, defense and civil protection and engines and transmissions.